Dear All,
What is the procedure for the payment of Gratuity? Whether does employer directly pay the gratuity amount to employee? or Has an employer to contribute any gratuity fund to Govt. so that the Govt. would regulate the payment of gratuity?
Please let me know how the payment of gratuity will be regulated.? What is the procedure for the payment.?
--
Regards,
Vishwanath
996 621 6474
From India, Hyderabad
19What is the procedure for the payment of Gratuity? Whether does employer directly pay the gratuity amount to employee? or Has an employer to contribute any gratuity fund to Govt. so that the Govt. would regulate the payment of gratuity?
Please let me know how the payment of gratuity will be regulated.? What is the procedure for the payment.?
--
Regards,
Vishwanath
996 621 6474
From India, Hyderabad
Gratuity is the amount payable by the employer to an employee when he leaves the company after 5 years of service. As per the Act, the amount becomes due at the time of employee leaving the establishment due to any reason, viz, resignation, superannuation or death. In the case of death, the qualifying phrase of five years of continuous service is not applicable. The amount of gratuity is 15 days average salary at the time the gratuity calculation becomes due for every year of service. While doing so, if there is a fraction of service of six months and more, the same will be taken as one year. as such an employee who leaves after 6 years and seven months will be eligible for seven years gratuity. The maximum gratuity is Rs 3,50,000.
Gratuity is basically an amount payable by the employer himself and for which no contribution either by the employer or employee is required to be made to any public fund. The payment of gratuity may accrue at any time that we can not predict when an employee leaves and the amount is based on the salary of the person at the time of his leaving. However, for superannuation cases, since it is almost known, employers do make a provision for gratuity payment by transferring an amount from the Profit & Loss account or by making suitable investments. But this is to make the things more easy for the employer only.
Regards,
Madhu.T.K
From India, Kannur
Gratuity is basically an amount payable by the employer himself and for which no contribution either by the employer or employee is required to be made to any public fund. The payment of gratuity may accrue at any time that we can not predict when an employee leaves and the amount is based on the salary of the person at the time of his leaving. However, for superannuation cases, since it is almost known, employers do make a provision for gratuity payment by transferring an amount from the Profit & Loss account or by making suitable investments. But this is to make the things more easy for the employer only.
Regards,
Madhu.T.K
From India, Kannur
Dea Mr. Madhu, Thank you very much. I need to have a small clarification, whether gratuity is applicable in case of termination after 5 years. Regards, Vissu
From India, Hyderabad
From India, Hyderabad
If termination is following the provisions of Industrial Disputes Act, 1947, then gratuity is to be paid whereas, if one has been dismissed on charge of gross misconduct proved in a domestic inquiry then no gratuity is payable. In this context please remember that dismissal is different from discharge. The term discharge will include such termination and retrenchment due to any reason beyond the conduct of employee, whereas, dismissal is the last punishment given to an employee for such misconduct for which no punishment less than dismissal shall be given. An employee dismissed shall not get any benefits from the company.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Recently I read in news papers and media that the gratuity ceiling is to raised from the present 3.5 lacs to 10 lacs for private sector employees. Could any one tell the present status of the bill pending in parliament (bcoz parliament session comes to an end somewhere in Mid May 2010). Also Plz. clarify whether the amendment is applicable to Bank employees whose limit at present is only 3.5 lac?
From India, Madras
From India, Madras
the Grautuity amendment bill has been passed by both the houses of Parliament, President of India has to give assent and then ministry will notify the date of effect, when the bill include private sector also definitely banks will also be included. already Government servants and certainPSus have been notified in earlier amendment.
regards
vasudevans
From India, Madras
regards
vasudevans
From India, Madras
Thanks mr.vasudevan. Kindly also clarify whether the date of effect will be a prospective date or retrospective date? If retrospective, what would be the date of effect and what the criteria govt.of india has for fixing the retrospective date? Can any body in the fora clarify?
From India, Madras
From India, Madras
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